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Financial Analysis is means, evaluating the critical financial information in the financial statements in order to understand the operations of a firm and make decisions regarding it. It is basically the analysis of various facts and figures in a financial statement and interprets it so as to increase business profits. Financial statement analysis is largely a study of relationships among the various financial factors in a business, as disclosed by a single set of statements, and a study of trends of these factors, as shown in a series of statements. The analysis and interpretation of financial statements are an attempt to determine the significance and meaning of financial statement data so that the forecast may be made of the prospects for future earnings, ability to pay interest and debt maturities (both current and long-term) and profitability and sound dividend policy. In other words, it means establishing relationships between various items of a financial statement and gaining ...